ADB funds $ 150 m for Mahaweli Water Security Investment Program

Ministry Secretary Dr. R.H.S.Samarathunga and ADB Country Director Sri Widowati sign the agreement

The Government is planning to transfer Mahaweli Water to North western, North Central and Northern Provinces under the Mahaweli Water Security Investment Program with the aim of maximising the productivity of Mahaweli River Basin water resources.

The total investment cost of this program is around Rs. 90 billion ($ 675 million) and the Government of Sri Lanka has entered in to two loan agreements to obtain financial assistance for tranche of the above program. 

The ADB has agreed to provide $ 453 million under the Multi-tranche Financing Facility (MFF) of ADB through three tranches for the implementation of this program.

The Government contribution for the total program is $ 108 million and the balance $ 114 million will be arranged through co-financing. The total investment cost of tranche 1 is $ 190 million and $ 150 million will be obtained from ADB as loans. The Government will invest balance $ 40 million. 

Three major investment projects; Upper Elahera Canal Project, North Western Province Canal Project, Minipe Left Bank Canal Rehabilitation Project will be implemented under the above investment program. The construction of new and improved water conveyance and storage infrastructure under this program will increase the productivity of agricultural lands in the above provinces. 

A total of 25,000 farmer families under Upper Elahera Canal Project, 40,000 farmer families under North Western Province Canal Project and 15,000 farmer families under Minipe Left Bank Canal Rehabilitation Project will be directly benefited through this program. In addition, provision of safe drinking water for people live in those areas will help to prevent Chronic Kidney Disease. (CKD)  

This project will be implemented by the Mahaweli Authority of Sri Lanka and Department of Irrigation under the supervision of the Ministry of Mahaweli Development and Environment 

In this connection, Dr. R.H.S. Samarathunga, Secretary to the Ministry of Finance on behalf of the Government of Sri Lanka and Sri Widowati, Country Director of ADB Sri Lanka Resident Mission on behalf of ADB, signed the two Loan Agreements to obtain $ 150 million on 17 September at the Ministry of Finance.